Rising Sunflower Oil Prices Stimulate Increases in Soybean and Palm Oil Costs
The limited operation of Ukrainian oil extraction plants, caused by power shortages and frequent attacks on ports, has led to a reduction in the supply of sunflower oil from Ukraine. This, in turn, has resulted in rising prices for Russian sunflower oil and supported high prices for other vegetable oils.
This is reported by AgroReview
Price Dynamics in Global Oil Markets
Over the past week, prices for Russian sunflower oil have increased by $40-50 per ton, reaching levels of $1280–1290 per ton FOB. As a result, export prices for deliveries to India have risen by another $30-40 per ton, amounting to $1390-1400 per ton CIF Mumbai.
In Ukraine, the demand for sunflower oil delivered to ports has also shown an increase of $30 per ton, reaching $1270-1280 per ton. However, due to plant downtimes, the supply of oil remains limited.
The rise in oil prices has prompted an increase in sunflower prices in the domestic market of Ukraine, leading to a boost in its supply. It is expected that with the decrease in frosts, plant operations will resume, and the volumes of sunflower and oil supplies at high prices will increase.
Palm and Soybean Oil: The Impact of Global Factors
The increase in sunflower oil prices has also stimulated the export of palm oil from Malaysia: in the first half of January, exports rose by 15-17%. This has supported palm oil prices, although significant stocks in the country (the highest in the last 7 years) continue to exert pressure on quotations. February futures for palm oil on the Bursa Malaysia exchange rose by 0.9% over the week, reaching 4100 ringgits per ton ($1013 per ton).
March futures for soybean oil on the CBOT increased by 2.7% over the week to $1158 per ton, and by 7.3% over the month. The rise in value was aided by a 7.4% increase in oil prices over two weeks. At the same time, prospects remain uncertain due to expectations regarding biofuel production in the U.S. in 2026-2027 and potential declines in oil prices, which could further pressure the oil market.
“It should be noted that soybean oil prices in Brazil rose by $10 per ton over the week to $1130-1140 per ton FOB, while prices in China even decreased by $7 per ton to $1173 per ton.”
Additionally, recent threats from President Trump to raise import tariffs for European countries due to his desire to purchase Greenland have led to a decline in U.S. stock indices by 1.7-2.4%. This could result in further drops in oil prices, exacerbate the economic crisis, and reduce demand for energy resources and biofuels.